Core Insights - Iridium Communications reported Q2 2025 EPS of $0.20, missing the Zacks Consensus Estimate by 13% and down from $0.27 in the prior year due to a one-time gain of $19.8 million last year not recurring [1][9] - Quarterly revenues reached $216.9 million, an 8% increase year over year, driven by service revenues and equipment sales, beating consensus estimates by 1% [2][9] Revenue Breakdown - Total service revenues increased by 2% year over year to $155.6 million, contributing 72% to total revenues, with a subscriber base expansion driving the growth [3][4] - The commercial service segment accounted for 59% of total revenues, rising 2% to $128.8 million, supported by strong IoT performance [4] - Government service revenues grew by 1% to $26.8 million, attributed to a contractual rate increase with the U.S. Space Force [4] Equipment and Engineering Performance - Subscriber equipment sales declined by 15% to $19.5 million, aligning with company expectations, and are projected to remain flat for the full year [5] - Engineering and support revenues surged by 62% to $41.9 million, primarily due to increased U.S. government activity, indicating ongoing demand for Iridium's satellite expertise [6] Financial Metrics - Total operating expenses were $166.6 million, up from $157.4 million in the prior-year quarter, mainly due to higher service costs [7] - Operational EBITDA increased by 6% year over year to $121.3 million, reflecting strength in recurring service and engineering revenues [10] Subscriber and Liquidity Information - As of June 30, the company had 2,483,000 billable subscribers, a 3% increase from the previous year, supported by commercial IoT growth [10] - Total cash, cash equivalents, and marketable securities were $79.3 million, with $1.8 billion of net debt [11] Updated Outlook - The company lowered its full-year 2025 service revenue growth guidance from 5%-7% to 3%-5% due to several factors, including subscriber losses and delays in PNT revenues [12] - OEBITDA is still forecasted to be between $490 million and $500 million, an increase from $470.6 million in 2024 [13]